Question

A and B are partners having profit sharing ratio of 2 : 1 with Capitals of rupees one lakh each partnership deed provides IOC at 5% per annum and iod at 10% per annum. drawings of partners are during the year rupees 10000 and rupees 20000. Salary to A Rs. 6000 p.a. and commission to B Rs. 14000. Prepare p and l appropriation account, if the firms profit is Rs. 80000​

Answer 1

Hii mate

here is your answer

__________________________________________________________________________________

PROFIT & LOSS APPROPRIATION A/C

_________________________________________To salary a/c 6000 by profit a/c80000

To com. a/c 14000

To int.on drawing a/c

A's. 500

B's. 1000 =1500

To int.on com.a/c 700

To profit & loss a/c

A's profit 38534

B's profit 19266

57800

_________________________________________

80000 80000

working note::

i) int on drawings

A's int. = 10000 X 10% X 6months

= 500

B's int. = 20000 X 10% X 6mnths

= 1000

ii) int on commission

B's commission = 14000 X 5%

= 700

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